If you are planning to purchase or sell a property, there have been two significant announcements to be aware of:
The Stamp Duty holiday extension
The biggest announcement from the Chancellor is the extension of the Stamp Duty holiday. The Stamp Duty holiday was due to expire on the 31st March 2021 however, it has now been extended to the 30th June 2021. This provides home buyers with an additional three months to purchase a property within England or Northern Ireland without having to pay any stamp duty on the first £500,000.
Although this had been widely anticipated, it will come as a great relief to many buyers and sellers, who had been struggling to complete by the March 2021 deadline.
Extending the Stamp Duty holiday will also benefit people who are hoping to move home. A purchase of £500,000 would save you £15,000 in Stamp Duty fees. These extra funds could now go towards your deposit and other associated costs such as lender and solicitor’s fees.
Furthermore, the Chancellor also announced additional changes that will come into effect after the June 2021 deadline. The ‘nil-rate band’ (where there is no stamp duty payable) has been increased to £250,000 until the end of September 2021. It then returns to the original £125,000 that was present prior to the initial holiday period. This means that even if you do ultimately miss the June 2021 deadline, you can potentially still save money.
For full information about stamp duty visit the government website. (https://www.gov.uk/stamp-duty-land-tax)